Macatawa Bank Net Income vs. Return On Asset
Taking into consideration Macatawa Bank's profitability measurements, Macatawa Bank may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Macatawa Bank's ability to earn profits and add value for shareholders.
Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
For Macatawa Bank profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Macatawa Bank to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Macatawa Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Macatawa Bank's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Macatawa Bank over time as well as its relative position and ranking within its peers.
Macatawa |
Macatawa Bank Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Macatawa Bank's current stock value. Our valuation model uses many indicators to compare Macatawa Bank value to that of its competitors to determine the firm's financial worth. Macatawa Bank is considered to be number one stock in net income category among its peers. It also is considered to be number one stock in return on asset category among its peers . The ratio of Net Income to Return On Asset for Macatawa Bank is about 2,770,769,231 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Macatawa Bank's earnings, one of the primary drivers of an investment's value.Macatawa Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Macatawa Bank |
| = | 43.22 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Macatawa Bank |
| = | 0.0156 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Macatawa Return On Asset Comparison
Macatawa Bank is currently under evaluation in return on asset category among its peers.
Macatawa Bank Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Macatawa Bank, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Macatawa Bank will eventually generate negative long term returns. The profitability progress is the general direction of Macatawa Bank's change in net profit over the period of time. It can combine multiple indicators of Macatawa Bank, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Macatawa Bank Corporation operates as the bank holding company for Macatawa Bank that provides commercial and consumer banking and trust services. Macatawa Bank Corporation was incorporated in 1997 and is based in Holland, Michigan. Macatawa Bank operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 279 people.
Macatawa Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Macatawa Bank. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Macatawa Bank position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Macatawa Bank's important profitability drivers and their relationship over time.
Use Macatawa Bank in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Macatawa Bank position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Macatawa Bank will appreciate offsetting losses from the drop in the long position's value.Macatawa Bank Pair Trading
Macatawa Bank Pair Trading Analysis
The ability to find closely correlated positions to Macatawa Bank could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Macatawa Bank when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Macatawa Bank - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Macatawa Bank to buy it.
The correlation of Macatawa Bank is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Macatawa Bank moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Macatawa Bank moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Macatawa Bank can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Macatawa Bank position
In addition to having Macatawa Bank in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Real Estate
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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Check out Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Consideration for investing in Macatawa Stock
If you are still planning to invest in Macatawa Bank check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Macatawa Bank's history and understand the potential risks before investing.
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